Google Passes the World’s Biggest Oil Co, ex#1 Exxon, in Stock Value
|February 11, 2014||Posted by Staff under Inequality / Concentration|
A 2014 excerpt of AFP, Feb 10.
Google overtook US oil giant ExxonMobil on Monday to become the world’s number two company when rated by market value, behind its high-tech rival Apple.
Even though Google shares fell 0.38 percent, a bigger drop in Exxon stock allowed the Internet giant to capture the second spot in market capitalization.
Google’s market cap at the end of the trading day was $394 billion, compared to the $388 billion of ExxonMobil. Apple remained well ahead with a market capitalization of $472 billion.
Google briefly overtook Exxon during the trading session last Friday but Monday was the first time this was confirmed at the close of trade.
ExxonMobil shares fell 1.17 percent on Monday to $89.53, bringing its year-to-date loss to 11.5 percent.
Google, despite Monday’s modest dip, is near its all-time high and has doubled in value since July 2012. The shares closed Monday at $1,172.93.
The California-based Internet group is the world leader in online advertising, its Android operating system has become the dominant platform for smartphones and is also gaining fast in tablet devices.
Google’s other projects include a self-driving car and its Google Glass eyewear. The company recently bought Nest Labs in what is seen as a move into connected home technology.
Ed. Notes: Is their bigness solely due to their business? Or do corporations benefit from another factor? While some companies must grow to awesome size in an immense market, can all that growth be attributed to market dimensions and to selling more and better than the other guy? No, it can’t, because firms who succeed in markets also succeed in the halls of power.
Rich businesses buy favors from government that tilt the playing field for them, against their competitors.
- What do tech companies get? Mainly incredibly cheap patent protection, way below what a private firm would charge to protect intellectual property.
- What do oil companies get? They get most of the value of the oil in the ground, which is the biggest part of the value of oil (otherwise oil taxes couldn’t be so high outside the US; near 80% of crude barrel price in Norway). In the US, royalty payments to the people are quite low.
- What do banks get? They get the value of land via mortgages, and note most properties sell again well before the mortgage is paid.
- What do telecoms get? They get the EM spectrum for hugely below its value, in some cases for free, as are TV licenses.
- What do polluters like car manufacturers and factory farms get? No fees, no fines, and barely and enforcement of the merely feeble laws.
- What do utilities get? Cheap or free franchises, which are monopolies in the area the utility does business.
- And all businesses get limited liability for when they consciously harm consumer, worker, or nature, as do pharmaceuticals while trying to grab greater unearned profit.
- Further, most benefit from taxes since they’re skewed to the middle class, and from the absence of a rent share or Citizen’s, making people more desperate for jobs and willing to accept lower wages. There are more favors, but you get the picture.
Without government granting so many valuable privileges, and if government actually preferred to defend the rights of everyone to a safe environment, then the Googles and Apples and Exxons could be big and profitable but could not be titantic and imperious. They’d be consumer friendly or, on a level playing field, lose market share to competitors.